1 of 1
SENATE DOCKET, NO. 80 FILED ON: 1/10/2023
SENATE . . . . . . . . . . . . . . No. 1298
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Anne M. Gobi
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act authorizing municipal use of the prudent investor standards.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :Anne M. GobiWorcester and Hampshire 1 of 2
SENATE DOCKET, NO. 80 FILED ON: 1/10/2023
SENATE . . . . . . . . . . . . . . No. 1298
By Ms. Gobi, a petition (accompanied by bill, Senate, No. 1298) of Anne M. Gobi for legislation
to authorize municipal use of the prudent investor standards. Municipalities and Regional
Government.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 1336 OF 2021-2022.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act authorizing municipal use of the prudent investor standards.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 54 of chapter 44 of the General Laws, as appearing in the 2022
2Official Edition, is hereby amended by inserting the following subtitle:
3 “(a) General Rule:”
4 Section 2. Said section is hereby amended by inserting at the end thereof, the following
5subsection:-
6 (b) Prudent Investor Rule
7 This paragraph shall take effect in any city, town or district upon acceptance in
8accordance with the provisions of General Laws Chapter 4, Section 4. Upon acceptance of this
9paragraph any city, town, or district may manage trust funds held in its custody as a combined 2 of 2
10investment pool and may invest said funds in accordance with the provisions of the
11Massachusetts Prudent Investor Act of Chapter 203C of the General Laws and not in accordance
12with paragraph (a) of this section. If any provision of this paragraph conflicts with the terms of a
13bequest, trust, or other instrument that expresses the clear intent of the donor, then such funds
14may be managed and invested only in accordance with the terms of such bequest, trust, or other
15instrument.